Accrual income versus cash flow for a period. Thomas Book Sales, Inc., supplies textbooks to college and university bookstores. The books are shipped with a proviso that they must be paid for within 30 days but can be returned for days. In 2018, Thomas shipped and billed book titles totaling $830,000. Collections, net of return credits, during the year totaled $758,315. The company spent $315,712 acquiring the books that it shipped. . Using accrual accounting and the preceding values, show the firm's net profit for the past year. . Using cash accounting and the preceding values, show the firm's net cash flow for the past year. . Which of these statements is more useful to the financial manager? Why? . Using accrual accounting and the preceding values, show the firm's net profit for the past year in the following table. (Round to the nearest dollar.) Accounting View (accrual basis) Thomas Book Sales, Inc. Income Statement for the Year Ended 12/21

Accrual income versus cash flow for a period. Thomas Book Sales, Inc., supplies textbooks to college and university bookstores. The books are shipped with a proviso that they must be paid for within 30 days but can be returned for days. In 2018, Thomas shipped and billed book titles totaling $830,000. Collections, net of return credits, during the year totaled $758,315. The company spent $315,712 acquiring the books that it shipped. . Using accrual accounting and the preceding values, show the firm's net profit for the past year. . Using cash accounting and the preceding values, show the firm's net cash flow for the past year. . Which of these statements is more useful to the financial manager? Why? . Using accrual accounting and the preceding values, show the firm's net profit for the past year in the following table. (Round to the nearest dollar.) Accounting View (accrual basis) Thomas Book Sales, Inc. Income Statement for the Year Ended 12/21

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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